Putting capability management into practice requires both a solid theoretical foundation and realistic approaches. This book introduces a development methodology that integrates business and information system development and run-time adjustment based on the concept of capability by presenting the main findings of the CaaS project – the Capability-Driven Development (CDD) methodology, the architecture and components of the CDD environment, examples of real-world applications of CDD, and aspects of CDD usage for creating business value and new opportunities. Capability thinking characterizes an organizational mindset, putting capabilities at the center of the business model and information systems development. It is expected to help organizations and in particular digital enterprises to increase flexibility and agility in adapting to changes in their economic and regulatory environments. Capability management denotes the principles of how capability thinking should be implemented i